Bitcoin Utility Grows During The Bear Market

– On-chain analysis is a way of examining transactions over a network in order to gauge the health and utility of that network.
– Transactions conducted within exchanges wallets have been trending lower from the May 2021 peak, indicating that there is less transfer activity taking place within exchanges.
– The total number of deposits and withdrawals to and from exchanges has also decreased, suggesting that people may be less engaged with exchanges overall.
– The number of transactions from all exchanges to derivatives exchanges has also dropped, indicating that derivatives trades are not currently very attractive.
– However, the total number of transactions taking place on the network has actually increased, suggesting that there is high demand for Bitcoin outside of exchanges.
– The HODLing behavior of long-term investors can be gauged by studying UTXO value and age bands. These bands suggest that more investors are holding and accumulating Bitcoin, rather than selling.



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Bitcoin Utility Grows During The Bear Market 2

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